Fannie Mae recognized as largest issuer of green bonds
The Climate Bond Initiative, as part of the Third Annual Green Bond Pioneer Awards, recognized Fannie Mae as the 2017 Largest Issuer of Green Bonds in the world.
The awards are a globally recognized symbol of innovation and achievement in green bond market development, according to a release.
In 2017, Fannie Mae issued $27.6 billion in Green Mortgage-Backed Securities (MBS) backed by either green building-certified properties or properties targeting a reduction in energy or water consumption, up from $3.6 billion in 2016 and $111 million in 2015. The 2017 Green MBS issuance volume is in addition to the $3.4 billion in Green REMIC tranche issuance volume.
The Multifamily Green GeMS REMIC (FNA 2017-M15 A2) security is now included in the Bloomberg Barclays MSCI Green Bond Index – a measure of the global market for fixed-income securities issued to fund projects with direct environmental benefits.
Fannie Mae Green Financing loans are secured by multifamily properties that have been awarded one of 14 Green Building Certifications, such as LEED or ENERGY STAR, or which have Fannie Mae-financed improvements that target at least a 25 percent reduction in energy or water consumption. For loans originated prior to 2018, the consumption reduction target was 20 percent or greater.
Fannie Mae introduced its Green Financing product to the market in 2011, and securitizes these loans as Green MBS.